'One in 10' Invalidate Car Cover

Jul 10, 2007

One in 10 motorists could have invalid car insurance because they lied when they applied for the cover, research showed yesterday. Around 6% of people intentionally lied about basic details such as their age and address, while 5% of people lied about where their car is parked at night in a bid to save money, according to price comparison website uSwitch.com.

More than 3% of drivers also failed to declare convictions for speeding and drink driving or any driving bans they had received.

The research also found that 15% of people who use their car to drive to work claim they do not commute in it, instead opting for insurance that offers cover for social and domestic use only.

Three out of four people admitted that they were fully aware that providing incorrect information could invalidate their policy, with 9% saying they did it to keep the cost of cover down.

The group warned that providing incorrect information could invalidate a motor insurance policy, leaving the motorist to foot the bill for a potential claim themselves. It added that at pounds 1,636 the average car insurance claim was four times higher than the average annual premium of pounds 409.

Aron Thompson, head of insurance at uSwitch.com, said, "With many consumers seeing car insurance as a grudge purchase, it's no great surprise to see people either withhold or knowingly provide inaccurate, crucial information in order to get cheaper cover.

"To the consumer, this may seem like a little white lie to save money. In reality, it could end up teaching the driver a costly lesson - on average pounds 1,636 - as the provider is under no obligation to settle a claim based on a policy which is inaccurate."

But he added that people were not always deliberately being dishonest, and there was a lot of confusion among consumers as to what counted as using a car to commute in, particularly among those who drove to a station but then continued their journey by train.

(c) 2007 Western Mail. Provided by ProQuest Information and Learning. All rights Reserved.